Stocks had a flat day on Friday but closed out October on a solid footing as investors braced themselves for this week's Federal Reserve meeting and the mid-term elections. Upward revision to second-quarter GDP also helped send indexes higher.
The Dow average edged up slightly more than 4 points, or 0.04%, to 11118.49. Microsoft led the gainers on the DJIA, rising 1.5% to $26.66. The broader S&P's 500 stock index fell less than a point or 0.1% to 1183.26. The technology-focused Nasdaq Composite index closed the session almost unchanged. On the New York Stock Exchange, two stocks advanced for everyone that declined.
For the month, the Dow average gained 3.1% while the broader S&P's 500-stock index closed up 3.7%. The Nasdaq Composite index was the leading gainer of the three averages, rising 5.9%. Rolling in September's performance, the Dow has rallied 11%; the NASDAQ 18.6%; and the S&P500 12.8%.
Bond prices rose, sending corresponding yields lower. The yield on the benchmark 10-year note dropped to 2.60% from 2.66% late Friday.
This week sees a number of heavyweights reporting their numbers, including Loews Corp. L and Baker Hughes BHI today, with MasterCard MA, BP BP, Pfizer PFE, CVS Caremark CVS, WellPoint WLP and Fluor FLR later in the week.
Today saw strength in Asia, with the Shanghai Composite index surging 2.5% and the Hang Seng closing up 2.4%. However, the yen's rise to a 15-year high against the dollar sent the Nikkei 225-stock average off 0.5%. European bourses followed with early-session gains, the Dax with a rise of 0.3%, the CAC and FTSE were both up 0.4%.
US premarket futures suggest a modestly higher opening, following strength in Asian shares that was fueled by an estimate-beating Chinese manufacturing activity. The nation's purchasing managers' index rose to a six-month high in October, advancing to 54.7 from September's 53.8, and topping economists' estimates for 53.8.
Most market participants are of the view that the markets' stellar performance has been the result of hopes that the Fed will soon unveil the second round of quantitative easing measures. However, some participants also say a sell-on-the-news result is likely. Also most appear to expect the Fed may choose to adjust as data dictates, and so the week's calendar of data still assumes import, especially the nonfarm payrolls number due on Friday post-Fed decision, as perhaps likely to weigh on next month's Fed plans.
BAKER-HUGHES (BHI): Free Stock Analysis Report
BP PLC (BP): Free Stock Analysis Report
CVS CAREMARK CP (CVS): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis Report
LOEWS CORP (L): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
WELLPOINT INC (WLP): Free Stock Analysis Report
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